Group 1 - The price of light crude oil futures for July delivery on the New York Mercantile Exchange fell by $0.64, closing at $60.89 per barrel, a decrease of 1.04% [1] - The price of Brent crude oil futures for July delivery dropped by $0.65, closing at $64.09 per barrel, a decline of 1.0% [1] - Goldman Sachs forecasts that the international benchmark for crude oil, Brent, and the North American pricing benchmark, WTI, will be more subdued and persistently weak compared to the current low point in 2025-2026 [1] Group 2 - China International Capital Corporation (CICC) predicts that tariffs may further suppress the growth rate of supply in China's civil aviation industry, estimating an average annual growth rate of approximately 3.1% for passenger capacity (available seat kilometers) from 2025 to 2028, compared to 15.4% from 2009 to 2019 [1] - The average annual growth rate for passenger aircraft in the industry is expected to be only 2.8% during the same period [1] - The significant drop in oil prices since 2025 is expected to improve the cost structure for airlines, providing a solid foundation for the initiation of an aviation cycle, with potential for substantial profit elasticity for airlines if the cycle turns upward [1] Group 3 - Leading companies in the aviation sector include China Eastern Airlines (00670), China Southern Airlines (600029), Air China (601111), Capital Airport (00694), and China Civil Aviation Information Network (00696) [2]

Core Viewpoint - The average annual growth rate of China's civil aviation passenger supply (available seat kilometers, ASK) is expected to be around 3.1% from 2025 to 2028, significantly lower than the 15.4% growth rate from 2009 to 2019, indicating a solid foundation for the aviation cycle to start [1][12][64]. Supply Growth Factors - The introduction of tariffs may further suppress the growth rate of China's civil aviation supply. Although the tariff rate has significantly decreased compared to April 2025, it still impacts the willingness of Chinese airlines to introduce new Boeing aircraft, potentially leading to a longer recovery cycle for aircraft manufacturers' production capacity [3][6]. - As of April 2025, Chinese airlines have nearly 600 aircraft orders from Boeing and Airbus, with most deliveries concentrated between 2025 and 2027. However, there is a high uncertainty regarding delivery timelines, with an expected 25% of aircraft deliveries being delayed in the next three years [3][13][20]. - The impact of leased aircraft on China's aviation supply is expected to gradually diminish, as major airlines have substantial aircraft orders and are less inclined to expand their fleets through leasing due to rising leasing costs [3][43]. Aircraft Retirement Trends - The volume of aircraft retirements remains at a peak level, with the industry entering a phase of high aircraft retirements due to aging fleets and concentrated lease expirations. The retirement rate is projected to stabilize around 2.5% in the coming years [4][51]. - Factors affecting aviation supply include aircraft utilization rates, which are expected to gradually improve, and a trend of decreasing average seat numbers per aircraft due to the increasing proportion of smaller aircraft [4][59]. Tariff Impacts - The tariffs imposed on U.S. imports have increased the costs for Chinese airlines to acquire Boeing aircraft, potentially leading to a decrease in demand for new aircraft and delays in orders [6][30]. - The global supply chain for aircraft manufacturing remains tight, with tariffs exacerbating the situation by increasing the costs of imported components, thereby extending the aircraft maintenance cycles [8][7]. Production Capacity and Delivery Issues - The production capacity of Boeing, Airbus, and COMAC is affected by global supply chain constraints and tariffs, leading to slower recovery in production capacity and delivery timelines [7][20]. - The delivery peak for Airbus aircraft is expected in 2026, while Boeing's delivery peak is anticipated in 2027, with significant uncertainty surrounding the delivery schedules due to production capacity issues [21][34]. Market Dynamics - The average annual growth rate of the passenger fleet is projected to be 2.8% from 2025 to 2028, a significant decrease from pre-2020 levels, driven by rationalized aircraft acquisitions and the peak retirement phase in the aviation market [61][64]. - The demand for domestic aircraft, particularly the C919, is expected to grow, but actual delivery timelines may be extended due to production capacity constraints and tariff impacts [35][38].

Core Viewpoint - The delivery of the domestically produced C909 aircraft marks a significant milestone for China Southern Airlines, enhancing its fleet and expanding its operational capabilities in the regional aviation market [1][3]. Group 1: Aircraft Delivery and Specifications - The C909, originally known as ARJ21, has successfully completed a series of rigorous tests and validations before being delivered to China Southern Airlines [1]. - The C909 has a range of 2,225 to 3,700 kilometers and has seen a total of 164 units delivered to date, with its route network covering over 160 cities in China and Southeast Asia [3]. Group 2: Operational Plans and Network Expansion - Following the acquisition of the C909, China Southern Airlines plans to optimize its route network, offering more travel options for passengers starting from Wuhan [5]. - The airline intends to deploy the C909 on routes such as Wuhan to Haikou and Huizhou, while also exploring new potential routes like Wuhan to Nantong and Wuhan to Yancheng [5]. - By the end of 2025, China Southern Airlines aims to manage a total of five C909 aircraft, alongside its existing fleet of Boeing 787 and 737 aircraft, to enhance its operational structure [5].

Core Viewpoint - The China Southern Airlines Group (CSAG) showcased its technological innovations and advancements in aviation at the third Civil Aviation Science and Technology Innovation Achievement Exhibition, emphasizing its commitment to smart operations and sustainable development [1][3][10]. Group 1: Smart Operations - CSAG presented its four major self-developed software products under the "Tian" series, which enhance safety and efficiency in aviation operations, achieving over 98% accuracy in aircraft fault prediction and reducing fault localization time by 80% [3]. - The "Tian" series covers critical business areas such as aircraft maintenance, operational command, safety management, and pilot management, supporting the entire chain of intelligent aviation safety production [3]. Group 2: Independent Innovation - The exhibition highlighted CSAG's domestically developed flight and navigation training devices and mobile intelligent maintenance stations, which are on par with international standards and widely used in pilot training and aircraft maintenance [5]. - The first self-developed Airbus A320Neo flight and navigation training device features a modular, lightweight design and achieves operational effectiveness equivalent to international training equipment [5]. Group 3: AI Applications - CSAG is integrating artificial intelligence into aviation safety and operations, showcasing eight AI application scenarios that enhance safety operations and management, marking a significant step towards "AI + Aviation" development [8]. Group 4: Green Development - To support the national "dual carbon" goals, CSAG has implemented refined management practices, achieving a 33.08% year-on-year increase in green flight service bookings and saving 20.19 million tons of fuel, resulting in a carbon reduction of 63.62 million tons [10]. - The company is developing a new generation of electronic flight bags based on the original Harmony system, promoting cost reduction and efficiency in green development [10]. Group 5: Interactive Experience - CSAG set up a "Smart Interaction" experience area at the exhibition, allowing attendees to engage in virtual reality experiences related to aircraft maintenance and emergency drone operations, demonstrating significant public interest in the company's technological achievements [11]. Group 6: Commitment to Innovation - CSAG has accumulated 689 patents, ranking among the industry leaders, and has received 38 provincial and ministerial-level science and technology awards during the 14th Five-Year Plan period, reflecting its recognized technological innovation capabilities [12]. - The company aims to continue supporting national strategies through technological innovation, striving to build a modern aviation industry system and enhance passenger service quality [12].

南航集团还展出了国内首台自研A320NEO飞行与导航程序训练器（以下简称"FNPT"），技术上采用全模块、轻量化、多耦合设计，构建了高适配模块化 FNPT驾驶舱架构；基于自主研发的高等级全动模拟机技术，构建FNPT验证数据包开发与数据采集体系；提供标准化数据接口，实现航班运行数据和训练数 据全数据库融合。整体运行效果达到国际同等训练装备的水平。 此外，展区内还展示了南航智能体平台、飞机舱音分析、云E家等八大AI应用场景。南航集团在展会上设置了"智慧互动"体验区，观众可以戴上VR设备学习 如何维修保障民航客机，或是模拟操控无人机完成应急物资投送任务。 北京商报讯（记者 关子辰 牛清妍）5月26日，第三届民航科教创新成果展在北京国家会议中心开幕。据中国南方航空集团有限公司（以下简称"南航集团"） 消息，南航集团以"智慧南航，飞向美好未来"为主题，携自主研发的"天"系列软件产品及多项突破性航空装备亮相成果展。截至目前，南航集团拥有专利数 量已达689件，位居行业前列。 南航集团的"智启天穹"展区展示了自主研发的天瞳、天极、天越、天健四大"天"系列软件产品，覆盖飞机维修、运行指挥、安全管理和飞行员管理等关键业 务板块 ...

Group 1 - The A-share airport and shipping sector has strengthened, with Huaxia Airlines rising over 7% [1] - Both Juneyao Airlines and China National Aviation have increased by more than 3% [1] - China Eastern Airlines and Southern Airlines also experienced gains [1]

Core Viewpoint - The company has announced an extension of the cash management plan for idle raised funds from its non-public issuance of A-shares and public issuance of convertible bonds, allowing for a maximum of RMB 17 billion and RMB 19 billion respectively for cash management [1][2][4] Summary by Sections 1. Basic Situation of Raised Funds - The total amount raised from the non-public issuance of A-shares is RMB 12.782 billion, with a net amount of RMB 12.776 billion after deducting issuance costs, used for introducing 31 aircraft and repaying company loans [2][3] - As of March 31, 2025, RMB 12.594 billion has been invested from the non-public issuance, generating RMB 0.457 billion in interest and cash management income, leaving a remaining amount of RMB 0.639 billion [3] - The total amount raised from the public issuance of convertible bonds is RMB 16 billion, with a net amount of RMB 15.980 billion after costs, used for aircraft purchases and working capital [3] - As of March 31, 2025, RMB 15.509 billion has been invested from the public issuance, generating RMB 0.710 billion in interest and cash management income, leaving a remaining amount of RMB 1.181 billion [3] 2. Specifics of Cash Management Extension - The maximum amount for cash management from the non-public issuance is set at RMB 7 billion, while for the public issuance, it is RMB 12 billion, with a rolling management approach [4][5] - The extension period for cash management is 12 months from the end of the previous authorization, specifically from June 23, 2025, to June 22, 2026, for non-public issuance and from October 23, 2025, to October 22, 2026, for public issuance [4][5] - The cash management products will include seven-day notice deposits and transferable large-denomination certificates of deposit [4] 3. Impact on the Company - The cash management of idle raised funds is conducted in compliance with national laws and regulations, ensuring no impact on the normal investment progress of raised funds [5][6] - This approach aims to enhance the efficiency of fund utilization and increase returns for the company and its shareholders [5][6] 4. Risk Control Measures - Strict management of raised funds will be implemented, ensuring that only idle funds are used for cash management and that no non-raised funds are mixed [6] - Continuous monitoring of deposit products will be conducted to ensure liquidity and safety of funds [6] - The sponsor institution will supervise the use of funds and the board and supervisory board have the right to inspect the fund usage [6]

Meeting Details - The 7th meeting of the 10th Supervisory Board of China Southern Airlines was held in Guangzhou, with all 3 supervisors present [1] - The meeting was conducted in accordance with relevant laws and regulations [1] Resolutions Passed - The election of Zhang Tao as the Chairman of the 10th Supervisory Board was unanimously approved, with 3 votes in favor [1] - The proposal for the cash management extension of temporarily idle raised funds from A shares and convertible bonds was reviewed and approved, ensuring compliance with regulatory requirements [2] Fund Management Proposal - The cash management extension proposal for temporarily idle raised funds does not affect the normal progress of investment projects and aims to enhance fund utilization efficiency [2] - The proposal is in the best interest of the company and all shareholders, particularly small and medium investors, with no changes to the investment projects or harm to shareholder interests [2]

Core Viewpoint - The legal opinion issued by Beijing Dacheng (Guangzhou) Law Firm confirms that the convening, holding, and voting procedures of China Southern Airlines' 2024 Annual General Meeting comply with relevant laws and regulations, ensuring the legitimacy of the meeting and its resolutions [4][15]. Group 1: Meeting Procedures - The annual general meeting was presided over by Chairman Ma Xulun, with the notice detailing the time, location, voting methods, and other relevant information [4][5]. - The meeting was held on May 23, 2025, at the designated location, consistent with the notice [5][6]. Group 2: Attendance and Voting - A total of 847 attendees participated in the meeting, representing 12,571,491,445 shares, which is a significant portion of the company's total shares [7]. - The meeting included various stakeholders, such as current directors, supervisors, senior management, and invited guests [7]. Group 3: Voting Results - Fourteen proposals were submitted for voting, with ordinary resolutions requiring a simple majority and special resolutions needing a two-thirds majority [8][14]. - The voting results for key proposals included: - Proposal 1: 99.6989% approval for the 2024 Board of Directors' work report [10]. - Proposal 2: 99.9745% approval for the 2024 Supervisory Board's work report [11]. - Proposal 3: 99.9737% approval for the full annual report and performance announcement [11]. - Proposal 5: 99.9850% approval for the profit distribution plan for 2024 [12]. - Proposal 13: 99.9353% approval for the election of an independent non-executive director [14]. Group 4: Legal Validity - The law firm confirmed that all procedures and qualifications for attendees and conveners were legally valid, and the voting results were legitimate [15].

Meeting Overview - The annual general meeting of China Southern Airlines was held on May 23, 2025, in Guangzhou, Guangdong Province [1] - The meeting was attended by 845 A-share shareholders and 2 H-share shareholders, with A-share shareholders holding a total of 9,822,793,428 shares, representing 54.21% of the total shares [1] Voting Results - All resolutions presented at the meeting were approved, with A-share shareholders voting 99.6563% in favor and H-share shareholders voting 99.8511% in favor [1][2] - The total votes for ordinary shares amounted to 12,533,643,435, with a majority of 99.6989% in favor of the resolutions [1][2] Shareholder Participation - A-share shareholders accounted for 54.21% of the total shares, while H-share shareholders accounted for 15.17% [1] - The voting method combined on-site registered voting and online voting, ensuring compliance with the Company Law and the company's articles of association [1] Legal Compliance - The meeting's procedures, including the convening and voting, complied with relevant laws and regulations, and the results were deemed legally valid [5]